Why the auction market just dropped even further, but not everywhere |
Why the auction market just dropped even further, but not everywhere
May 19, 2026 — 5:00am
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The auction market faced a key test on the first weekend after the budget curbed investor tax breaks, and the results came in favouring buyers.
But it’s not as simple as buyers being able to take their pick of any property they choose, and neither have investors dropped out of the market entirely.
The preliminary auction clearance rate looked different in each of the largest cities.
Sydney’s auction clearance rate fell to 51 per cent on Domain data, four percentage points lower than the previous week’s preliminary result, and on some measures the weakest since auctions were interrupted by social-distancing measures in 2020.
Why the auction market just weakened to downturn-era levels
Melbourne’s preliminary result went in the opposite direction and rose four points from the previous week to 60 per cent (preliminary rates are usually revised a few percentage points lower once more auction results are collected during the week).
An auction clearance rate of 60 per cent is considered a balanced market, and anything below that indicates prices are likely to be falling. Melbourne’s early read is still likely to be revised down to........